There has been some suspicious USDT activity on Bitfinex Wallet over the past 24 hours. Just last night, more than 100 million USDT was removed from circulation and Bitfinex sent unidentified addresses millions of USDT. This unusual activity of the Tether has raised eyebrows within the industry. On Bitfinex alone, over 110 million USDT was sent out overnight. As you probably already know, Bitfinex is the third largest holder of USDT with over 259 million in its wallet. Just last night, that number dropped to 143 million. This left the Tether Treasury as the second largest.
Why Is The Bitfinex USDT Store Being Emptied
Some speculators believe that this usual movement of Tether may be directly linked to the fact that Bitfinex is facing bankruptcy. The bankruptcy allegations have been denied by the company in the past. There has been some uncertainty about Bitfinex and its servicing bank after HSBC took the cryptocurrency exchange as a partner. This isn’t the first time USDT is experiencing this kind of movement. Transactions like these have been used to send tokens from one exchange to the other. The reason why it is alarming is that it is happening at a very fast pace and Bitfinex seems to be the only exchange that is being emptied of USDT. Crypto enthusiasts are now having doubts about the stability of the exchange.
As the Bitfinex addresses are being emptied, Huobi is getting a steady inflow of USDT. In the past, shifts like these have led to catastrophe. The good thing is that USDT has grown a lot over the past few years taken up about 20% of the total trading volume of cryptocurrencies on a regular day.
At the time of writing, Kraken was recording the highest volume of USDT. Most of the volume was from sales showing that investors are trying to cash out. The price of USDT fell to $0.98 within one hour during yesterday’s trading session. Today, it is has managed to go up to $0.997248. This means it is up by 0.22% against the USD and 4.81% against Bitcoin. The 24 hour trading volume is $3,302,465,919 while the total market capitalization is $2,698,973,193.